The Jamestown Steel Company Manufactures and Assembles Desks and Other

question 102

Multiple Choice

The Jamestown Steel Company manufactures and assembles desks and other office equipment at several plants. The weekly production of the Model A325 desk follows a normal probability distribution, with a mean of 200 and a standard deviation of 16. Recently, due to market expansion, new production methods have been introduced and new employees hired. The vice president of manufacturing would like to investigate whether there has been an increase in the weekly production of the Model A325 desk. The mean number of desks produced last year (50 weeks, because the plant was shut down two weeks for vacation) is 203.5. Is the mean number of desks increased from 200? Test using the.01 significance level.

• A) Reject the null hypothesis; there is sufficient evidence to indicate an increase in the weekly production.
• B) Unable to reject the null hypothesis; there is sufficient evidence to indicate a change in weekly production.
• C) Unable to reject the null hypothesis; there is insufficient evidence to indicate an increase in weekly production.
• D) Reject the null hypothesis; there is insufficient evidence to indicate a change in the weekly production.

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Definitions:

Creative Destruction

A concept in economics which signifies the process by which new innovation leads to the demise of older technologies or businesses, fostering marketplace evolution.

Dominant Firms

Companies that hold a major share of the market within their industry, exerting significant influence over market conditions, including prices and available supply.

New Products

Goods or services that have been recently developed, introduced to the market, or innovated to meet consumer needs.

Monopolistic Competition

A market structure in which many firms sell a differentiated product, entry is relatively easy, each firm has some control over its product price, and there is considerable nonprice competition.